Standard vs Itemized Deduction Calculator Formula

Understand the math behind the standard vs itemized deduction calculator. Each variable explained with a worked example.

Use the Standard vs Itemized Deduction Calculator

Formulas Used

Standard Deduction

standard_amount = filing_status

Itemized Deductions

itemized_amount = itemized_total

Additional Tax Savings

better_option = abs(itemized_total - filing_status)

Variables

VariableDescriptionDefault
filing_statusStandard Deduction (by filing status)(USD)14600
mortgage_interestMortgage Interest(USD)8000
state_local_taxState & Local Taxes (SALT)(USD)7000
charitableCharitable Donations(USD)3000
medicalMedical Expenses (over 7.5% AGI)(USD)0
itemized_totalDerived value= mortgage_interest + min(state_local_tax, 10000) + charitable + medicalcalculated

How It Works

Standard vs Itemized Deductions

Choose whichever is higher to reduce your taxable income.

2024 Standard Deduction

| Filing Status | Amount | |---|---| | Single | $14,600 | | Married Filing Jointly | $29,200 | | Head of Household | $21,900 |

Common Itemized Deductions

  • Mortgage interest
  • State & local taxes (capped at $10,000)
  • Charitable contributions
  • Medical expenses (over 7.5% of AGI)

    • Worked Example

    Single filer: $8,000 mortgage, $7,000 SALT, $3,000 charity.

    filing_status = 14600mortgage_interest = 8000state_local_tax = 7000charitable = 3000medical = 0
    1. 01Itemized = $8,000 + $7,000 + $3,000 = $18,000
    2. 02Standard = $14,600
    3. 03Itemizing saves $18,000 - $14,600 = $3,400 more

    Ready to run the numbers?

    Open Standard vs Itemized Deduction Calculator